Silvercorp's Strategic Acquisition of Tulkubash and Kyzyltash Gold Assets in Kyrgyzstan

In a landmark move, Silvercorp Metals Inc., listed on both the TSX and NYSE American under the symbol SVM, has finalized its acquisition of the Tulkubash and Kyzyltash gold projects in Kyrgyzstan. This acquisition has been highly anticipated following the company’s earlier announcement made on January 20, 2026.

The acquisition involved the purchase of Chaarat ZAAV CJSC, a subsidiary of Chaarat Gold Holdings Limited. This strategic move was made possible after the Kyrgyz government waived its statutory pre-emptive rights, allowing Silvercorp to proceed with a payment of $92 million. This significant sum underlines the company’s commitment to expanding its influence in the gold mining sector of the region.

As per the partnership agreements established, Silvercorp is set to convert ZAAV into a joint venture company alongside Kyrgyzaltyn, a wholly-owned agency of the Kyrgyz Republic. Under this arrangement, Silvercorp will hold a commanding 70% interest in the joint venture, while Kyrgyzaltyn will maintain a 30% free-carry interest. This structure positions Silvercorp as the operator of the joint venture, strengthening its operational capabilities in the region.

The joint venture aims to extend the validity period of its mining license from June 25, 2032, to June 25, 2062. This extension is crucial for long-term planning and investment, and Silvercorp is poised to make an additional $60 million cash payment to the National Investment Agency of the Kyrgyz Republic as stipulated in their cooperation agreement.

The Tulkubash and Kyzyltash projects are particularly promising due to their established licensing and the surrounding exploration licenses, which cover additional gold zones, including Karator and Ishakuld in the geologically rich Tian Shan region. The fully permitted status of these projects positions Silvercorp favorably as operational developments can commence without delay.

This acquisition aligns with Silvercorp’s broader strategy focused on delivering shareholder value through profitability and growth. The company has a history of generating consistent free cash flow from its long-life mines, demonstrating robust operational effectiveness and commitment to shareholder returns.

In the wake of this acquisition, Silvercorp is committed not just to the financial aspects, but also to responsible mining practices and environmental sustainability. The company aims to balance economic growth with environmental stewardship, reflecting a long-term commitment to both the local community and shareholders.

Legal guidance on the acquisition was provided by King & Wood Mallesons from their Beijing office, highlighting the importance of thorough legal frameworks in international transactions involving mining assets.

As Silvercorp embarks on this new chapter with the Tulkubash and Kyzyltash projects, stakeholders will be keenly observing how the integration into their existing operations unfolds. This acquisition not only strengthens their position in Kyrgyzstan but also in the global mining landscape, supporting their mission to uncover additional value through rigorous exploration and responsible development.

To discover more about Silvercorp and its initiatives, visit Silvercorp's Official Website. For direct inquiries, potential investors and interested parties can reach out via provided contact details on the site.